New Government Policy Imposes Strict Standards on Garage Sales Nationwide

Introductory Comments by Michael J. McKay – What’s Next?!? Government Restricts what we can do and Mandates what we can do. It is time to yell “STOP” to Government Intervention and re-discover Common Sense.

By Diane Mecedo, FOX News,  September 18, 2009

The “Resale Round-up,” launched by the Consumer Product Safety Commission, enforces new limits on lead in children’s products and makes it illegal to sell any items that don’t meet those limits or have been recalled for any other reason.

The strict standards were set in the 2008 Consumer Product Safety Improvement Act after a series of high-profile recalls of Chinese-made toys.
The standards were originally interpreted to apply only to new products, but now the CPSC says they apply to used items as well.

“Those who resell recalled children’s products are not only breaking the law, they are putting children’s lives at risk,” said CPSC Chairman Inez Tenenbaum. “Resale stores should make safety their business and check for recalled products and hazards to children.”
In order to comply, stores, flea markets, charities and individuals selling used goods — in person or online — are expected to consult the commission’s 24-page Handbook for Resale Stores and Product Resellers (pdf) and its Web site for a breakdown of what they can’t sell.
Violators caught selling anything on the enormous list face fines of up to $100,000 per infraction and up to $15 million for a related series of infractions.
CPSC spokesman Scott Wolfson says the fines are intended for large companies with serious infractions.
“CPSC is an agency that has used its penalty powers over its 30-year history against companies,” Wolfson told FOXNews.com. “CPSC is not seeking to pursue penalties against individuals hosting a garage sale or yard sale, we are encouraging them to take the right steps to not resell recalled products.”
But FOX News Legal Analyst Bob Massi says the law makes no distinction for families and small resellers.
“Most people having garage sales at this point don’t have much anyway, so to have a fine levied against them is tantamount to harassment,” Massi told FOXNews.com. “And if you or I asked 100 people about this, they would never even know the law exists.”
Don Mays, senior director of product safety planning at the publisher of Consumer Reports, says the hefty penalties are necessary to have an impact.
“The former civil penalty limit of $1.87 million was too small to be an effective deterrent to large companies who flagrantly violated the law,” Mays told FOXNews.com. “Mattel and its subsidiary Fisher-Price, for example, recently paid a $2.3 million penalty for importing about 2 million toys that violated the CPSC 30-year-old lead paint ban — that amounts to just over one dollar per toy.”
When FOXNews.com came to his garage sale, vendor Ilan Broochian said the same was not the case for his household.
“You fine me in today’s economy $1000 dollars and that would hurt me,” Broochian said. “So, just make the fine bigger to them; don’t take their responsibility and put it on me.”
“It is scary to think that there could be such hefty fines imposed on unsuspecting households,” another garage sale organizer, Patti Lombardi, told FOXNews.com. “I think I speak for many people when I say that the government spends too much time interfering in the individual citizen’s personal life and this is almost bordering on the ridiculous … what if it opens up a Pandora’s box of litigation brought by the purchasers of items at garage sales?”
Wolfson says the law may be tough, but it’s necessary to keep consumers — and especially children — safe.
“Many children have choked and died on small parts that have broken off or been incorporated into toys,” Wolfson told FOXNews.com.
He noted that dozens of children have swallowed powerful magnets that fell out of magnetic toys and have needed open-chest surgery as result.
“We don’t make haphazard decisions about risks here at CPSC,” he said. “So much of what we do here and what this new law aims to achieve is looking at issues where children have been hurt previously.”
But critics say the Resale Round-up is just another example of the government overstepping its boundaries.
“It’s absurd when nanny-state bureaucrats want to regulate things we buy at mom-and-pop shops or second-hand stores,” Wes Benedict, executive director of the Libertarian National Committee, told FOXNews.com. “Consumer product safety is best left to a free market where suppliers can compete based on reputation and track records. American grown-ups aren’t stupid, and they know they need to be careful about what they buy for their children from complete strangers at no-name stores.”
Toy industry expert and TimetoPlayMag.com content director Chris Byrne says the law is well-intended, but it may be taking things too far.

“The overall law I think is awfully broad and doesn’t take all of the science into effect,” he told FOXNews.com. “You can’t consume lead by touching something and putting your finger in your mouth. That’s not how it happens. The lead has to be injested and has to be injested in particles small enough to enter the bloodstream or on a material in the stomach where it will be digested in the stomach acids and go into the bloodstream — and that’s never happened from toys.”

In cases where toys have injured children, Byrne said the injuries often resulted from misusing the product.
“In virtually all the cases of magnet swallowing these were things that were swallowed by kids that were below the age grade, or in the case of the older kids they were pretending to have tongue piercings. By banning magnets, you’re not going to stop that level of play,” Byrne said.
“When you bring something into your home there should be an assumption of risk,” he added. “And if you have a child under 3 and you bring in something age graded for 5 and up – who’s responsibility is that? I think it’s the parents’.”
And toys aren’t the only issue. Byrne said the biggest challenge now is for all school products.
“If I’ve got a wirebound notebook, the lead content in that wire binding is now under scrutiny, even though the chance of ingesting lead in any amount from something like that is virtually non-existent,” he said. “It’s a level of political grandstanding to say ‘we’re taking care of everything,’ but the science clearly demonstrates that the transference is not really possible — I mean, a child who eats the wire binding from a notebook is going to have significantly worse health problems than lead.”
The Resale Round-up has led some resale stores and charities to stop accepting children’s goods altogether, something President and CEO of Goodwill Industries Jim Gibbons said has some clients concerned.
“I saw on blogs, consumers saying, ‘Don’t take away my ability to shop at Goodwill for children’s clothing – this is how I clothe my kids and get them to school,'” Gibbons told FOXNews.com.
 
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Dr Yuri Maltsev on Socialistic Medicine 09/19/09 RFM

Interview with Economist and Author of ‘Requiem for Marx‘, Dr. Yuri Maltsev who defected in 1989 from the Soviet Union and was a member of then-President Gorbachev’s perestroika reform team. Yuri has been an outspoken defender of Liberty for twenty years around the world. We discussed what really happened in Russia under Gorbachev and what history tells us we can expect from Socialistic Medicine in the USA. This is an excellent and timely interview you will want to download and share with your friends and family.  Hosted by Michael McKay with Special Commentator Meghan O’Toole.

Play mp3 here RFM Yuri Maltsev Final 091909

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Dr Robert Murphy on The Great Depression and The Federal Reserve 09/12/09 RFM

*This is a Re-Broadcast our popular interview with Dr. Robert Murphy*. Dr Murphy is the author of "The Politically Incorrect Guide to the Great Depression and the New Deal".  His excellent book was reviewed by Host, Michael McKay and Special Commentator, Jeffrey Hedquist. This very entertaining interview discusses how ‘Just about everything you were taught about the Great Depression was False’ and ‘How the Federal Reserve was the Biggest Culprit in the GD’.  You will want to listen to Bob’s practical recommendations on how to Survive and Thrive in the coming periodwhich could turn into the Greater Depression.

[audio http://radiofreemarket.files.wordpress.com/2012/06/rfm_robert_murphy_final_091209.mp3]
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Mr Jake Towne on Health Care 09/05/09 RFM

Interview with Mr. Jake Towne, who is an independent candidate for U.S. Congress in Pennsylvania’s 15th District, north of Philadelphia.  Jake is a Chemical Engineer by training and a recent graduate of Mises University 2009. The focus of this excellent interview was on Health Care and how government interference has reduced our choices and increased our costs as consumers.  Topics included the Medical Profession’s Government Sponsored Monopoly and how it restricts competition, thus preventing lower costs and how Insurance Companies cannot compete across state lines and how that creates higher costs and fewer choices for consumers. Hosted by Michael McKay with Special Commentator Meghan O’Toole.

Play mp3 here RFM Jake Towne Final 090509

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Watching the Fed and its Friends Squirm

What is interesting is that the Fed has not yet filed an appeal to another court on Judge Preska’s Aug 24th Ruling that the Federal Reserve must disclose who it gave $2Trillion to last fall.  As you all know Bloomberg News Service sued the Fed on November 7, 2008 for this information which the Fed has continued to refuse.

Instead the Fed has appealed to Judge Preska herself to ‘please change her mind’ making the same arguments that Judge Preska already rejected in her 47 page ruling ( you can read the entire ruling here ).

Also the Fed has asked its friends in the Banking World over at the Clearing House Association LLC to file an appeal to Judge Preska also to change her mind. Note that these friends of the Fed are ABN Amro Holding NV, Bank of America Corp., Bank of New York Mellon Corp., Citigroup Inc., Deutsche Bank AG, HSBC Holdings Plc, JPMorgan Chase Inc., UBS AG, U.S. Bancorp and Wells Fargo & Co.

I would humbly guess that one or more of those friends have a direct vested interest in not revealing to the Public who received the $2 Trillion dollars.

Michael McKay

 

Federal Reserve Says Disclosing Emergency Loans Will Hurt Banks

By Mark Pittman

Aug. 27 (Bloomberg) — The Federal Reserve argued yesterday that identifying the financial institutions that benefited from its emergency loans would harm the companies and render the central bank’s planned appeal of a court ruling moot.

The Fed’s board of governors asked Manhattan Chief U.S. District Judge Loretta Preska to delay enforcement of her Aug. 24 decision that the identities of borrowers in 11 lending programs must be made public by Aug. 31. The central bank wants Preska to stay her order until the U.S. Court of Appeals in New York can hear the case.

“The immediate release of these documents will destroy the board’s claims of exemption and right of appellate review,” the motion said. “The institutions whose names and information would be disclosed will also suffer irreparable harm.”

The Fed’s “ability to effectively manage the current, and any future, financial crisis” would be impaired, according to the motion. It said “significant harms” could befall the U.S. economy as well.

The central bank didn’t say when it would file its appeal.

The Fed has refused to name the financial firms it lent to or disclose the amounts or the assets put up as collateral under the emergency programs, saying disclosure might set off a run by depositors and unsettle shareholders.

Bloomberg LP, the New York-based company majority-owned by Mayor Michael Bloomberg, sued on Nov. 7 under the Freedom of Information Act on behalf of its Bloomberg News unit.

Public Interest

“Our argument is that the public interest in disclosure outweighs the banks’ interest in secrecy,” said Thomas Golden, a lawyer with New York-based Willkie Farr & Gallagher LLP who represents Bloomberg.

Preska’s Aug. 24 ruling rejected the Fed’s argument that the records should remain private because they are trade secrets and would scare customers into pulling their deposits.

“What has the Fed got to hide?” said Senator Bernie Sanders, a Vermont independent who sponsored a bill to require the Fed to submit to an audit by the Government Accountability Office. “The time has come for the Fed to stop stonewalling and hand this information over to the public,” he said in an e-mail.

The Clearing House Association LLC, an industry-owned group in New York that processes payments between banks, filed a declaration that accompanied the request for a stay.

Negative Consequences

“Experience in the banking industry has shown that when customers and market participants hear negative rumors about a bank, negative consequences inevitably flow,” Norman Nelson, vice president and general counsel for the group, said in the document. “Our members have accessed the discount window with the understanding that the Fed will not disclose information about their borrowing, especially their identity.”

Members of the Clearing House are ABN Amro Holding NV, Bank of America Corp., Bank of New York Mellon Corp., Citigroup Inc.Deutsche Bank AG, HSBC Holdings Plc, JPMorgan Chase Inc., UBS AG, U.S. Bancorp and Wells Fargo & Co.

The case is Bloomberg LP v. Board of Governors of the Federal Reserve System, 08-CV-9595, U.S. District Court, Southern District of New York (Manhattan).

To contact the reporter on this story: Mark Pittman in New York at mpittman@bloomberg.net

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Dr Thomas DiLorenzo on Hamilton’s Curse 08/29/09 RFM

* Special Interview  with Dr. Thomas DiLorenzo, author of many excellent books including ‘Hamilton’s Curse‘ for a lively discussion on how Alexander Hamilton and his adoring fans have undercut the US Constitution and saddled us with a Central Bank and Interventionist Government.  Tom discusses how we are living under Fascialism, a term he coined to show how we are living under a combination of Fascism and Socialism.  This is truly one of our best interviews yet. Hosted by Michael McKay with Special Commentator, Jeffrey Hedquist.

 

[audio http://radiofreemarket.files.wordpress.com/2012/06/rfm_thomas_dilorenzo_final_082909.mp3]
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A GLIMPSE OF THINGS TO COME

By Patrick Barron

On Saturday, August 22, 2009, I went to Des Moines, Iowa to attend a public hearing of the Federal Reserve.  My friend, Patrick Barron, a 40 year Banking Consultant and former teacher of Austrian Economics at the University of Iowa also attended. Below is his essay of the event. For both Pat and myself it was downright chilling to see the good people gathered there so oblivious of their role in asking for greater Central Control over their lives and the lives of others.  One thing that is not reported in Pat’s excellent essay is the obvious illiteracy of the Federal Reserve Representatives themselves. These properly called ‘hapless‘ representatives could not correctly answer the question posed to them, ‘Who owns the Federal Reserve?‘  For me, their ignorance was very frightening. Michael McKay

Officials from the Federal Reserve Bank are touring the country—very quietly, it turns out—to gauge populist opinion of its handling of the current financial crisis and to garner support to increase its regulatory power to become the sole financial regulator in the country.  I attended one such event in Des Moines, Iowa, which was hosted by Iowa Citizens for Community Improvement (CCI).  This group has been around for several decades and is aligned with a national organization called National Peoples’ Action (NPA).  NPA claims to have been instrumental in passing the Community Reinvestment Act in the 1970s, which extorted banks to make loans to those with less than stellar credit records and to make mortgages on properties in blighted areas.  Both CCI and NPA are proud of their achievements and see no linkage between their lobbying efforts to force banks to make marginal loans and the resulting sub-prime lending crisis.

Several hundred people—my estimate is at least five hundred—crowded into a Des Moines church and sat for two and a half hours while CCI and NPA officials berating the hapless consumer affairs representatives from the Federal Reserve Bank’s Board of Governors in Washington, D.C. and consumer affairs representatives from the Federal Reserve Bank of Chicago, the local Fed office for Des Moines.  About a dozen people were paraded before the Fed panel, telling their tale of financial woe.  In this day of the tell-all reality show, no one seems embarrassed to confess his personal financial ineptitude in front of hundreds of people and the recording cameras.  And sorry tales these were.  And like all tell-all reality shows, no one took personal responsibility for his actions, which was just fine with CCI and NPA.

The Link Between Personal Irresponsibility and Big Government

A Ms. Kathleen Keest, currently of the Center for Responsible Lending and a CCI board member from its founding in the 1970s, listed four supposed fallacies that prevent the common man from getting his fair share of society’s goodies: the acceptance of personal responsibility, the desire for personal choice, concern over unintended consequences, and the free market.  According to Ms. Keest, all four are false gods.  It is impossible for man to take personal responsibility for something as complex and important as borrowing money; personal financial planning is too complex to allow the common man to exercise his free choice; the concern over the unintended consequences of government action should be dismissed out of hand; and, the free market is the cause of all our problems in the first place.

Now, consider how wonderfully Ms. Keest’s analysis dovetails into the Fed’s desire to increase its power.  True, the poor punching bags from the Fed’s consumer affairs offices had a rather nasty day being yelled at for over two hours, but the benefit is that Ms. Keest and the other professional busybodies actually called for INCREASING THE FED’S POWERS!  Undergoing hours of tongue-lashings is worth the price of obtaining even more power and bigger budgets.

Of course most of those in attendance at this meeting did not understand that the Fed itself is the underlying cause of our problems.  Speaker after speaker laid the blame squarely on the shoulders of the lenders, who forced their money upon an unsuspecting public, all the while knowing that the public could not repay the loans.  The logic of this argument is so ridiculous that I will not take the time to refute it.  But let me at least point out that all the many regulatory agencies also failed to detect the crime of irresponsible lending at its inception.  Now everyone’s hindsight vision is 20/20.

Despite the fact that few in the audience understood that massive money expansion, which led to massive credit expansion, was at the heart of the current crisis, there is one thing that everyone understood perfectly clearly; that is, that the Fed has enormous power to transfer wealth.  Speaker after speaker stated this fact as the reason for inviting the Fed to the meeting—they all want the Fed to shower its benevolence upon themselves and not others.  The common mantra was that it is time for the Fed to help Main Street and not Wall Street.  The Fed bailed out Wall Street and now all the big banks are paying big executive bonuses with their bailout money.  It’s time for the same thing to happen on Main Street.  Exactly what this means was not made clear, and I believe it was left unclear on purpose, so as not to alienate potential allies in calls for more money creation and more government economic intervention.

The Slippery Slope to Tyranny

This travesty of a supposed public meeting to gain the peoples’ input perfectly illustrates the kind of society to which we are plunging headlong.  It has taken the demagogues a hundred years to realize that control of the money supply is control of people.  Therefore, special interest groups like CCI and NPA do not focus their efforts on the peoples’ representatives.  They lobby for increasing the power of government agencies who then can be browbeaten into doing their bidding.  One of the most frightening moments of the meeting occurred when a George Goehl, executive director of NPA, whipped the crowd into a frenzy by showing a short video of NPA demonstrating in front of Fed Chairman Bernanke’s Washington, D.C. home.  The demonstrators eventually obtained a promise from Bernanke’s Secret Service bodyguards that they would deliver a list of demands to the Fed chairman.  Then Mr. Goehl told the audience that just hours before the meeting we were attending he had exacted a promise from the Fed consumer affairs representatives that Fed representatives would meet several times a year with CCI and NPA representatives.  The audience cheered wildly and Mr. Goehl basked in the adulation.

So, welcome to the future, where public policy will be made by non-elected bureaucrats who make deals with special interest groups who intimidate public officials in their private homes.  Do our bidding and we will support your efforts to obtain greater power and prestige for yourselves.  Of course, you must give us what we want and not what other special interest groups want.  Like the Bolshevik revolution in Russia, the most radical groups will work cooperatively with other special interest groups, such as farmers and small businessmen, to form a coalition with greater lobbying power.  But such coalitions are temporary.  The most radical groups will take over, just as the most radical and charismatic members will take over the surviving pressure group.  This is consistent with Friedrich Hayek’s explanation of why the worst rise to the top in politics—only the most amoral individuals lacking all concern for the rights of others are willing to persecute their fellow man in the name of some supposedly greater societal good.

But, of course, there is no greater societal good that justifies the use of power and coercion to control the lives of the many for the benefit of the few.  Ms. Keest and Mr. Goehl struck me as of the type who always rise when a foolish people are willing to give control over their lives to self-designated masters in the hope of trading freedom for security.  It is only just that such a people lose both their freedom and their security.

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Ms Whitney Wogan on Women and Money 08/22/09 RFM

Interview with Ms. Whitney Wogan, founder of WomenWithMoneyMoxie.com, on the topic: Women and Money. Special Commentator and this show’s Guest Host Jeffrey Hedquist discusses with her Money-Education from a Woman’s Perspective. Whitney points out the five things that women need to do about money and presents excellent points – and tactics – that empower women on this very important topic. In addition, guest Chris Opperman presents important information from the Austrian Economic perspective.
Posted in All Archived Shows, Austrian Economics, Money | Leave a comment

What Soviet Medicine Teaches Us

by Dr. Yuri Maltsev

By Dr. Yuri Maltsev

In 1918, the Soviet Union was the first country to provide universal “cradle-to-grave” healthcare coverage, to be accomplished through the complete socialization of medicine. The “right to health” became a “constitutional right” of Soviet citizens.

The advantages of this system were proclaimed to “reduce costs” and eliminate the “waste” that stems from “unnecessary duplication and parallelism” — i.e., competition.

These goals were similar to the ones declared by Mr. Obama and Ms. Pelosi — attractive and humane goals of universal coverage and low costs. What’s not to like?

The system had many decades to work, but widespread apathy and low quality of work paralyzed the healthcare system. In the depth of the socialist experiment, healthcare institutions in Russia were at least a hundred years behind the average US level. Moreover, the filth, odors, cats roaming the halls, drunken medical personnel, and absence of soap and cleaning supplies added to an overall impression of hopelessness and frustration that paralyzed the system. According to official Russian estimates, 78 percent of all AIDS victims in Russia contracted the virus through dirty needles or HIV-tainted blood in the state-run hospitals.

Irresponsibility, expressed by the popular Russian saying “They pretend they are paying us and we pretend we are working,” resulted in the appalling quality of the “free” services, widespread corruption, and loss of life. My friend, a famous neurosurgeon in today’s Russia, received a monthly salary of 150 rubles — one third of the average bus driver’s salary.

In order to receive minimal attention by doctors and nursing personnel, the patient had to pay bribes. I even witnessed a case of a “nonpaying” patient who died trying to reach a lavatory at the end of the long corridor after brain surgery. Anesthesia was usually “not available” for abortions or minor ear, nose, throat, and skin surgeries. This was used as a means of extortion by unscrupulous medical bureaucrats.

Being a People’s Deputy in the Moscow region from 1987 to 1989, I received many complaints about criminal negligence, bribes taken by medical apparatchiks, drunken ambulance crews, and food poisoning in hospitals and child-care facilities. Listening to frequent complaints about unnecessary and wasteful procedures in our healthcare system, I recall the case of a fourteen-year-old girl from my district who died of acute nephritis in a Moscow hospital as a doctor decided “to save X-ray film” — X-rays that would have disproven his diagnosis of neuropathic pain. He treated her with a heat compress, which killed the teenager almost instantly. He tried to save “precious” X-ray film (imported by the Soviets for hard currency) and the $5 or $10 cost of the radiologist instead of double-checking his diagnosis. There was no legal remedy for the girl’s parents and grandparents. By definition, a single-payer system cannot allow any such remedy. Her grandparents could not cope with this loss and they both died within six months. The doctor received no official reprimand.

To improve the statistics concerning the numbers of people dying within the system, patients were routinely shoved out the door before taking their last breath.

Not surprisingly, government bureaucrats and Communist Party officials, as early as 1921 (two years after Lenin’s socialization of medicine), realized that the egalitarian system of healthcare was good only for their personal interest as providers, managers, and rationers — but not as private users of the system.

So, as in all countries with socialized medicine, a two-tier system was created: one for the “gray masses” and the other, with a completely different level of service, for the bureaucrats and their intellectual servants. In the USSR, it was often the case that while workers and peasants were dying in the state hospitals, the medicine and equipment that could save their lives were sitting unused in the nomenklatura system.

At the end of the experiment, the official infant-mortality rate in Russia was more than 2.5 times as large as in the United States and more than five times that of Japan. The rate of 24.5 deaths per 1,000 live births was questioned recently by several deputies to the Russian Parliament who claim that it is seven times higher than in the United States. This would make the Russian death rate 55 compared to the US rate of 8.1 per 1,000 live births. Having said that, I should make it clear that the United States has one of the highest rates of the industrialized world only because it counts all dead infants, including premature babies, which is where most of the fatalities occur. Most countries do not count premature-infant deaths. Some don’t count any deaths that occur in the first 72 hours. Some countries don’t even count any deaths from the first two weeks of life. In Cuba, which boasts a very low infant-mortality rate, infants are only registered when the are several months old, thereby leaving out of the official statistics all infant deaths that take place within the first several months of life.

In the rural regions of Karakalpakia, Sakha, Chechnya, Kalmykia, and Ingushetia, the infant mortality rate is close to 100 per 1,000 births, putting these regions in the same category as Angola, Chad, and Bangladesh. Tens of thousands of infants fall victim to influenza every year, and the proportion of children dying from pneumonia and tuberculosis is on the increase. Rickets, caused by a lack of vitamin D and unknown in the rest of the modern world, is killing many young people. Uterine damage is widespread, thanks to the 7.3 abortions the average Russian woman undergoes during childbearing years. Keeping in mind that many women avoid abortions altogether, this means that many women have a dozen or more abortions in their lifetime.

Even today, according to the State Statistics Committee, the average life expectancy for Russian men is less than 59 years — 58 years and 11 months — while that for Russian women is 72 years. The combined figure is 65 years and three months.[1] By comparison, the average life span for men in the United States is 73 years and for women 79 years. In the United States, life expectancy at birth for the total population has reached an all-time American high of 77.5 years, up from 49.2 years just a century ago. The Russian life expectancy at birth is twelve years lower.[2]

After seventy years of socialism, 57 percent of all Russian hospitals did not have running hot water, while 36 percent of hospitals located in rural areas of Russia did not have water or sewage at all. Isn’t it amazing that socialist government, while developing sophisticated systems of weapons and space exploration, would completely ignore the basic human needs of its citizens?

Decay and the appalling quality of services are characteristic of not only “barbarous” Russia and other Eastern European nations: it is a direct result of the government monopoly on healthcare and can happen in any country. In “civilized” England, for example, the waiting list for surgery is nearly 800,000 out of a population of 55 million. State-of-the-art equipment is nonexistent in most British hospitals. In England, only 10 percent of the healthcare spending is derived from private sources.

Britain pioneered in developing kidney-dialysis technology, and yet the country has one of the lowest dialysis rates in the world. The Brookings Institution (hardly a supporter of free markets) found that 7,000 Britons in need of hip replacements, between 4,000 and 20,000 in need of coronary bypass surgery, and some 10,000 to 15,000 in need of cancer chemotherapy are denied medical attention in Britain each year.

Age discrimination is particularly apparent in all government-run or heavily regulated systems of healthcare. In Russia, patients over 60 are considered worthless parasites and those over 70 are often denied even elementary forms of healthcare.

In the United Kingdom, in the treatment of chronic kidney failure, those who were 55 years old were refused treatment at 35 percent of dialysis centers. Forty-five percent of 65-year-old patients at the centers were denied treatment, while patients 75 or older rarely received any medical attention at these centers.

In Canada, the population is divided into three age groups in terms of their access to healthcare: those below 45, those 45 – 65, and those over 65. Needless to say, the first group, who could be called the “active taxpayers,” enjoys priority treatment.

Advocates of socialized medicine in the United States use Soviet propaganda tactics to achieve their goals. Michael Moore is one of the most prominent and effective socialist propagandists in America. In his movie, Sicko, he unfairly and unfavorably compares health care for older patients in the United States with complex and incurable diseases to healthcare in France and Canada for young women having routine babies. Had he done the reverse — i.e., compared healthcare for young women in the United States having babies to older patients with complex and incurable diseases in socialized healthcare systems — the movie would have been the same, except that the US healthcare system would look like ideal and the UK, Canada, and France would look barbaric.

Now we in the United States are being prepared for the same discrimination in treatment of the elderly when it comes to healthcare. Ezekiel Emanuel is director of the Clinical Bioethics Department at the US National Institutes of Health and an architect of Obama’s healthcare-reform plan. He is also the brother of Rahm Emanuel, Obama’s White House chief of staff. Foster Friess reports that Ezekiel Emanuel has written that health services should not be guaranteed to

individuals who are irreversibly prevented from being or becoming participating citizens. An obvious example is not guaranteeing health services to patients with dementia.[3]

An equally troubling article, coauthored by Emanuel, appeared in the medical journal The Lancet in January 2009. The authors write that

unlike allocation [of healthcare] by sex or race, allocation by age is not invidious discrimination; every person lives through different life stages rather than being a single age. Even if 25-year-olds receive priority over 65-year-olds, everyone who is 65 years now was previously 25 years. Treating 65-year-olds differently because of stereotypes or falsehoods would be ageist; treating them differently because they have already had more life-years is not.[4]

Socialized medicine will inevitably create massive government bureaucracies — similar to our unified school districts — impose costly job-destroying mandates on employers to provide the coverage, and impose price controls that will inevitably lead to shortages and poor quality of service. It will also lead to nonprice rationing (i.e., rationing based on political considerations, corruption, and nepotism) of healthcare by government bureaucrats.

Real “savings” in the healthcare system could be achieved only by squeezing providers and denying care — there is no other way to save. The same arguments were used to defend the cotton farming in the South prior to the Civil War. Slavery certainly “reduced costs” of labor, “eliminated the waste” of bargaining for wages, and avoided “unnecessary duplication and parallelism.”

In supporting the call for socialized medicine, American healthcare professionals are like sheep demanding the wolf: they do not understand that the high cost of medical care in the United States is partially based on the fact that American healthcare professionals have the highest level of remuneration in the world. Another source of the high cost of our healthcare is existing government regulations on the industry, regulations that prevent the wonders of competition from lowering the cost. Existing rules such as “certificates of need,” licensing, and other restrictions on the availability of healthcare services prevent competition and, therefore, result in higher prices and fewer services.

Socialized medical systems have not served to raise general health or living standards anywhere. There is absolutely no analytical reason or empirical evidence that would lead us to expect it to do so in the United States. And, in fact, both analytical reasoning and empirical evidence point to the opposite conclusion. But the dismal failure of socialized medicine to raise people’s health and longevity has not affected its appeal for politicians, administrators, and their intellectual servants in search of absolute power and total control.

Most countries enslaved by the Soviet empire moved out of a fully socialized system through privatization and insuring competition in the healthcare system. Others, including many European social democracies, intend to privatize the healthcare system in the long run and decentralize medical control. The private ownership of hospitals and other units is seen as a critical determining factor of the new more efficient and humane system.

But, as a popular Russian aphorism warns, “the only lesson of history is that it does not teach us anything.” Despite the obvious collapse of socialist medicine in Russia and its bankruptcy everywhere else, it is still alive and growing in the United States. It possesses a mortal danger to freedom, health, and the quality of life for us and generations to come.

Yuri N. Maltsev, senior fellow of the Mises Institute, worked as an economist on Mikhail Gorbachev’s economic reform team before defecting to the United States. He is the editor of Requiem for Marx. He teaches economics at Carthage College.
Notes

[1] “Russian Life Expectancy on Downward Trend” (St. Petersburg Times, January 17, 2003).

[2] CRS Report for Congress: “Life Expectancy in the United States.” Updated August 16, 2006, Laura B. Shrestha, Order Code RL32792.

[3] Foster Friess, “Can You Believe Denying Health Care to People with Dementia Is Being Considered?” (July 14, 2009). See also Ezekiel J. Emanuel, “Where Civic Republicanism and Deliberative Democracy Meet”Download PDF (The Hastings Center Report, vol. 26, no. 6).

[4] Govind Persad, Alan Wertheimer, and Ezekiel J. Emanuel, “Principles for Allocation of Scarce Medical Interventions” (The Lancet, vol. 373, issue 9661).

Article Originally Appeared in Mises.org http://mises.org/story/3650

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Thomas E Woods Jr on his book Meltdown 08/15/09 RFM

* Special Interview * with New York Times Best Selling Author Thomas E. Woods, Jr. Author of Meltdown: A Free-Market Look at Why the Stock Market Collapsed, the Economy Tanked, and Government Bailouts Will Make Things Worse.  Host Michael McKay and Special Commentator Jeffrey Hedquist discuss with Tom what really happened in the fall of 2008 and how we can still avert a bigger crisis – if enough of us act now.

 

[audio http://radiofreemarket.files.wordpress.com/2012/06/rfm_thomas_woods_jr_final_081509.mp3]
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